A teller counts U.S. dollar bills at a bank in Qionghai, south China's Hainan Province.Photo:Xinhua

The offshore yuan strengthened 0.5 percent against the US dollar to reach 7.0627 as of 5 pm (Beijing time) on Monday, as fresh stimulus policies increased the attractiveness of yuan-denominated assets and boosted the rebound in the yuan's exchange rate.

The yuan has extended its appreciation trend since September. Last month, the spot exchange rate rose by a cumulative 725 basis points, or 1.02 percent, while the yuan's central parity rate strengthened 1,050 basis points, more than 1.47 percent, market data showed.

According to data released by the State Administration of Foreign Exchange (SAFE) on Monday, China's foreign exchange reserves totaled $3.32 trillion at the end of September, up by 0.86 percent compared with the end of August.

The SAFE said that in September, the US dollar index declined and global financial asset prices generally rose. The combined effects of currency translation and asset price changes have led to the growth in China's foreign exchange reserves in September, the administration added.

The yuan is strengthening steadily and the foreign exchange market operates steadily. Along with the rollout of monetary, property and capital market policies in China, market confidence has been notably elevated and international investors have accelerated their investment in yuan assets, which will provide solid support for the stability of China's foreign exchange reserves, Wen Bin, chief economist at China Minsheng Bank, told the Global Times on Sunday.

Zhou Maohua, an economist at China Everbright Bank, said that conditions are favorable for the yuan's exchange rate in the short term, and its exchange rate is expected to operate within an equilibrium range.

Global Times